Celero Communications has raised $275 million at a valuation of more than $3 billion as investors bet on networking technology needed to keep up with the rapid expansion of artificial intelligence data centers.
The financing was led by Atreides Management, Valor Equity Partners and CapitalG, with Atreides’ Gavin Baker joining Celero’s board. The two-year-old startup develops coherent digital signal processors that use fiber optics to move data between AI chip racks within data centers and between nearby facilities. CEO Nariman Yousefi said existing optical transmission technology is approaching its limits as AI clusters continue to scale.
Celero has developed technology designed to transfer data faster and across longer distances and is building its chips using TSMC’s commercially available 2-nanometer process. Its chip has been validated, with production expected to begin next year. The company will compete with established networking chipmakers including Marvell, Broadcom and Cisco, while seeking major cloud providers as customers.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
